Last week, the European Automobile Manufacturers Association released data on new car registrations for October 2024. Registrations in the European Union (“EU”) car market came in at 866,397 units last month, witnessing modest year-over-year growth of 1.1%. Registrations in key markets in Germany, Spain, France and Italy displayed mixed results. While Spain and Germany recorded 7.2% and 6% increase, respectively, registrations in France and Italy contracted 11.1% and 9.1% on a yearly basis.
In the first 10 months of 2024, EU market vehicle registrations reached 8.9 million units, up 0.7% year over year. During the said timeframe, registrations in Italy and Spain recorded growth of 0.9% and 4.9%, respectively, on a year-over-year basis. Registrations in France and Germany decreased 2.7% and 0.4%, respectively, in the first 10 months of the year.
On the news front, U.S.-based online auto auction leader Copart CPRT released its quarterly results. Japan’s Honda HMC is advancing its efforts to mass-produce solid-state batteries at lower costs. Italian-American automaker Stellantis STLA introduced the STLA Frame for full-size body-on-frame pickup trucks and SUVs and delayed the launch of the Ram all-electric pickup to the first half of 2025. Meanwhile, U.S. auto giant Ford F is set to cut 4,000 European jobs by 2027, citing weak electric vehicle (EV) demand, high costs and competition from Chinese rivals, with Germany and the U.K. hit hardest as part of its broader restructuring efforts.
Last Week’s Top Stories
Stellantis has introduced the STLA Frame platform, a battery EV (BEV)-native, multi-energy architecture designed for full-size body-on-frame pickup trucks and SUVs, a crucial segment in North America and key global markets. Engineered to meet the demands for power, durability and practicality, the platform offers a BEV range of up to 500 miles and a range-extended electric vehicle (REEV) capability of 690 miles. It boasts a maximum towing capacity of 14,000 pounds, a payload rating of 2,700 pounds and water fording up to 24 inches.As part of Stellantis' Dare Forward 2030 plan, the STLA Frame joins a lineup of global BEV platforms aimed at meeting diverse electrification needs.
In a separate development, the automaker has delayed the launch of its Ram all-electric pickup truck to the first half of 2025 as it continues vehicle testing. The all-electric pickup was expected to hit the market by the end of 2024, followed by a Ramcharger, which is equipped with a generator and gas engine, during the first quarter of 2025. The upcoming electric pickups will be the first vehicles built on the company’s STLA Frame platform.
Honda has established a demonstration facility in Sakura City, Japan, to advance its efforts in mass-producing solid-state batteries. These batteries are expected to offer longer range and greater durability EVs at reduced costs. Unlike conventional lithium-ion batteries, solid-state batteries replace liquid electrolytes with dry conductive materials. This change promises increased energy density and extended battery life but requires an entirely new production process.
Per Keiji Otsu, president of Honda R&D, these batteries could double EV driving ranges by 2030 and increase them by 2.5 times by the 2040s. Honda is investing ¥43 billion in the pilot line, nearly half of which is funded by Japanese government subsidies. The facility spans 27,000 square meters and is equipped with full-scale machinery across three buildings, each focusing on different stages of production. First for cathode formation and cell assembly, second for anode formation and the third for electrolyte activation and module assembly. HMC aims to begin production on this line in January 2025 with a continuous inline mixer that is three times faster than traditional batch processing.
Copart reported first-quarter fiscal 2025 (ended Oct. 31, 2024) adjusted earnings per share of 37 cents, matching the Zacks Consensus Estimate. The bottom line increased 8.8% year over year. Revenues of $1.15 billion topped the Zacks Consensus Estimate of $1.11 billion. The top line increased 12.4% from the year-ago reported figure.Copart’s fiscal first-quarter service revenues came in at $986.3 million, which increased from $859.5 million recorded in the year-ago period and outpaced the Zacks Consensus Estimate of $954 million. Service revenues accounted for 86% of total revenues. Vehicle sales totaled $160.5 million in the quarter, which fell from the prior-year quarter’s $160.9 million and missed the Zacks Consensus Estimate of $175 million.
Copart had cash, cash equivalents and restricted cash of $3.7 billion as of Oct. 31, 2024, compared with $1.5 billion as of July 31, 2024. Net cash from operating activities during the quarter under review totaled $482.3 million. Capex during the quarter was $236.8 million.
Copart currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ford announced plans to reduce its European workforce by around 4,000 employees, approximately 14% of its regional headcount, citing weak demand for EVs, insufficient government support for the EV transition and competition from subsidized Chinese automakers. The layoffs, representing 2.3% of Ford's global workforce of 174,000, will primarily impact Germany and the U.K., with 2,900 and 800 positions cut, respectively.
The company plans to complete the layoffs by 2027, pending union negotiations. Ford also revealed it will scale back production of its Explorer and Capri EV models at its Cologne facility. This move comes as Ford continues a costly restructuring of its European operations, which included 3,800 job cuts announced in early 2023 and the planned closure of its Saarlouis plant in Germany next year. This restructuring reflects Ford's broader effort to streamline operations and compete in a rapidly evolving automotive market.
Price Performance
The following table shows the price movement of some of the major auto players over the last week and six months.
Image Source: Zacks Investment Research
What’s Next in the Auto Space?
Next week, various auto biggies will release their U.S. vehicle delivery numbers for November. Stay tuned for usual news updates.
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Ford Motor Company (F) : Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
Copart, Inc. (CPRT) : Free Stock Analysis Report
Stellantis N.V. (STLA) : Free Stock Analysis Report
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